5 Things to Know Before Starting Business Setup In Dubai

Business Setup Dubai

The city of Dubai offers great opportunities for the business market. The business setup in Dubai can become an easy procedure if you are guided properly.

To start a business in any region of UAE, some factors are important for you to understand and must be followed for avoiding any loss or serious consequences.

Selecting Business Activity

Business activity is the first and the most significant step before company formation in Dubai. There are some restrictions in all states of UAE which do not allow some specific business operations that are prohibited within their boundaries.

Selecting a proper business activity can help you to focus on specific tasks which are required for a company set up in Dubai. The first thing you should understand is that does your firm follows Dubai norms and how your business affairs fit UAE standards.

Shareholder Structure

The free zone or mainland are two main sectors within which you will operate your business projects. The business setup in Dubai requires a fully formed structure that will help you to get a license and other permits. The free zone region mostly consists of trading or industrial business processes and the mainland mainly attracts professional or commercial firms.

The requirement for creating a business structure is essential for survival in Dubai’s competitive market. The local sponsors in the mainland hold about 51% share of your company but in the free zone, you have 100% ownership. The business structure is directly dependent on your jurisdiction and the nature of your company, so here are some major shareholder categories from which you can choose such as:

  • LLC (Limited Liability Company)
  • Joint Venture
  • Sole Proprietorship
  • Limited partnership
  • General partnership
  • Branch offices.

You need to select one of the mentioned business setup Dubai structures before opening your official enterprise in any region of Dubai.

Choosing Business License

The license acquiring for any legal business activity is extremely necessary for your business setup in Dubai. There are four major classes of business licenses in Dubai. The commercial, professional, industrial, and tourism. All of these license categories demand various terms and conditions but some general rules are applied to all of them.

The Freezone company Dubai or mainland company must get initial approval from DED (Department of Economic Development) or DMCC (Dubai Multi Commodities Centre). The Dubai Chamber also approves your business license, but you need to know some requirements before applying for the permit.

The list of certificates and documents for company formation in Dubai are:

  • Attested LLC certificate.
  • Government pre-approved forms.
  • Passport photos and copies.
  • Immigration Identity card for all business partners and employees.
  • Bank account details.
  • MOA (Memorandum of Association).

You need to pay some fee for attaining the desired license and it is advised to contact business setup consultants in Dubai. They can help you to find an affordable trading license package with no extra cost to pay Dubai government bureaus.

Register Trademark

The name of your enterprise is vital to get registered with the government before starting a business setup in Dubai. The trademark must respect the norms of the UAE local community and should not contain any unfitting word which gives the government a solid reason to permanently terminate your company set up in Dubai. The name must be unique and to avoid any copyright issue you must hire business setup consultants in Dubai to research a specific Arabic name for you.

Dubai has a Bright Future

Dubai state is considered one of the best compared to all other states of UAE. The amazing lifestyle and top-notch facilities help the established and fresh companies to expand their firms by utilizing the resources of Dubai. The commercial market in Dubai is booming and for business setup Dubai, you need to know some of the best features about Dubai which are:

Government is Helpful

The company formation in Dubai can become an easy process if you have the right support and guidance from business setup consultants in Dubai. Their government provides the best inner cities for specific business types. The smart (Internet) city, Media city, and Business Bay are one of those which attract thousands of foreign investors to spend and gain maximum profit. The advancement in technology made all parts of UAE a perfect platform for business setup Dubai.

Tax Incentives for Starters

The tax exemption for new foreign business owners in Dubai on corporate tax, personal income, and employment tax. This relaxation helps starters to grow their business nationally and create their firm representable globally.

The Labor Market is Vast

The manpower in Dubai is unlimited, the professional workers help foreign business owners to make their business system better and productive. Dubai’s highly educated and skilled labor assist their business tycoons to boost the economy of UAE. This environment is feasible for entrepreneurs to set up their company in Dubai with no problem of finding the best labor.

Rich Office Space Available

The free zone regions of Dubai are almost empty waiting for new industrial or manufacturing firms to launch their plants. In the mainland, the flex offices for rent are present in abundance. And with business consultancy agencies you can get office rooms at affordable prices.

Currency Exchange Rates are Encouraging

The Dubai AED currency is among the most stable and with the highest exchange rate globally. Foreign investors should understand the value of AED and they can use it for foreign exchange or cryptocurrency businesses. The trading sector can get maximum benefits through AED and foreign business enterprises. And can use it for import and export applications.


KWSME is the best business consultancy firm that helps inexperienced foreign traders or entrepreneurs with their business setup in Dubai. It can help you to register your company, completes documentation, VISA processing, and license attesting within weeks.

Feel free to visit kwsme.com to know more about rules and regulations before starting a business in Dubai.


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